Amendment status not verified — confirm the current text below against the official source.
The property of the firm- Subject to contract between the partners, the property of the firm includes all property and rights and interests in property originally brought into the stock of the firm, or acquired, by purchase or otherwise, by or for the firm, or for the purposes and in the course of the business of the firm; and includes also the goodwill of the business. Unless the contrary intention appears, property and rights and interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm Application of the property of the firm - Subject to contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purposes of the business. SHORT - NOTE -SEC- 15 - Partner can not transfer any part of the property of firm till the continuation of the partnership - Addanki Narayanappa vs. Bhaskara Krishnappa.AIR 1966 SC 1300. Personal profits named by partners - Subject to contract between the partners - a) If a partner derives any profit for himself from any transaction of the firm or from the use of the property or business connection of the firm or the firm name, he shall a'ccount for that profit and pay it to the firm If a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business. Right and duties of partners - Subject to contract (Between the partners - after a change in the firm - Where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remain the same as they were immediately before the change, as far as may be, after the expiry of the term of the firm - Where a firm constituted fora fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will' and where additional undertakings are carried out.- Where a firm constituted to carry out one or more adventures or Undertakings carries out other adventures or undertakings, the mutual rights and duties of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures or undertaking. CHAPTER IV - RELATION OF PARTNERS TO THIRD PARTIES Partners to be agent of the firm - Subject to the provisions of this Act, a partner is the agent of the firm for the purposes of the business of the firm. Implied authority of partner as agent of the firm- (1) subject to the provisions of Sec. 22, the act of a partner which is done to carry on , in the usual way, business of the kind carried on by the firm, binds the firm, The authority of a partner to bind the firm conferred by this section is called his implied authority" (2) In the absence of any usage or custom of trade to the contract, the implied authority of a partner does not empower him to - Submit a dispute relating to the business of the firm to arbitration. open a banking account on behalf of the firm in his own name. Compromise or relinquish any claim or portion of a claim by the firm, Withdraw a suit or proceeding filed on behalf of the firm. admit any liability in a suit or proceeding against the firm acquire immovable property on behalf of the firm. transfer immovable property belonging to the firm or enter into partnership on behalf of the firm. 20) Extension and restriction of partner's implied authority- The partners in a firm may, by contract between the partners, extend or restrict the implied authority of any partner. Notwithstanding any such restriction, any act done by a partner on behalf of the firm which falls within his implied authority binds the firm: unless the person with whom he is dealing knows of the restriction or does not know or believe that partner to be a partner. 21., Partner's authority in an emergency - A partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind the firm.